PUTRAJAYA, Jan 14 (Bernama) -- The new expatriate employment policy will come into force on June 1, allowing sufficient preparation time for employers and industry players, the Home Ministry (KDN) said today.
In a statement, KDN said the Cabinet on Oct 17 last year, agreed to implement the new policy, which includes a restructuring of salary thresholds for Employment Pass Categories I, II and III, as well as the introduction of fixed employment durations for expatriates in Malaysia.
The ministry said the existing expatriate employment policy, based on decisions of the Economic Council meeting on Dec 20, 2016, had been enhanced through a series of engagement sessions with industry players and stakeholders since 2022.
“The formulation of this new policy aligns with the objectives of the 13th Malaysia Plan (13MP) to reduce reliance on foreign labour and prioritise qualified local talent to fill vacancies before considering the hiring of expatriates,” the statement said.
In addition to salary adjustments, KDN said the policy introduces specific employment duration limits, which were previously not clearly defined.
“The setting of employment periods is not only intended to recognise highly skilled expatriates who continue to contribute to the country, but also to serve as a guide for employers to plan structured succession strategies with the involvement of local talent,” it said.
KDN said it will also conduct briefings and engagement sessions with all stakeholders, including industry players, employers and relevant agencies, to explain the implementation mechanism and policy implications.
This includes ensuring a smooth, transparent transition that does not disrupt business operations.
“In line with the Malaysia MADANI principles, the government will continue to ensure that policy reforms are implemented gradually and in the national interest, to support sustainable economic growth and long-term local human capital development,” the ministry said.
Under the new expatriate employment policy:
-- BERNAMA
